Tenant Fees Ban UK: What Landlords Can & Can't Charge in 2026

The landscape of renting in the UK has undergone significant transformation, with a clear focus on making renting fairer and more transparent for tenants. A cornerstone of this shift is the Tenant Fees Act 2019, commonly known as the 'tenant fees ban'. This legislation fundamentally changed what landlords and letting agents can request from tenants at the start of, during, and at the end of a tenancy. For landlords, understanding these rules is not just good practice-it's a legal obligation with tangible financial penalties for non-compliance.

What is the Tenant Fees Ban?

Introduced in 2019, the Tenant Fees Act aims to reduce the upfront costs faced by tenants when securing a rental property. In essence, it bans most fees associated with setting up a tenancy, including charges for referencing, credit checks, guarantor forms, and inventory checks. The principle is simple: tenants should only pay for rent, a refundable tenancy deposit, a refundable holding deposit, and certain specific, permitted payments.

Who Does the Tenant Fees Ban Apply To?

This legislation applies to virtually all assured shorthold tenancies (ASTs), student tenancies, and licences to occupy a property in England. This covers the vast majority of private residential tenancies. It does not generally apply to company lets or long leases (over 21 years) but for the typical private landlord, these rules are paramount.

Key Dates and Application

The Tenant Fees Act came into force in England on 1 June 2019 for all new tenancies and renewals. From 1 June 2020, the ban extended to all existing tenancies, meaning that even if a tenancy started before 1 June 2019, no prohibited fees could be charged or requested after that date. The rules are now fully in effect for all relevant tenancies.

What a Landlord Can Charge (Permitted Payments)

Under the Tenant Fees Act, landlords and agents are legally permitted to ask for the following payments:

• Rent: This is the most obvious and principal payment.
• Refundable Tenancy Deposit: Capped at five weeks' rent where the annual rent is less than £50,000, or six weeks' rent where the annual rent is £50,000 or more. The deposit must be protected in a government-approved scheme.
• Refundable Holding Deposit: Capped at no more than one week's rent. This holds the property while checks are undertaken and should either be returned to the tenant within a specified timeframe (usually 7-15 days depending on agreement or refusal) or converted into part-payment of the tenancy deposit or first month's rent. Strict rules apply regarding its retention.
• Payments in the event of a default: These can include reasonable charges for replacing a lost key or security device, or a default fee for late payment of rent. However, late rent fees can only be charged if the rent is overdue by 14 days or more, and the charge must not exceed 3% above the Bank of England's base rate for each day the payment is outstanding.
• Payments for the variation, assignment or novation of a tenancy: If a tenant requests changes to the tenancy agreement mid-term, such as adding a new tenant or pet, you can charge a fee. This fee must not exceed £50, or reasonable costs if these are higher. You must be able to provide evidence of these costs.
• Payments for the early termination of a tenancy (when requested by the tenant): If a tenant wishes to end their tenancy early, they are responsible for paying the landlord's incurred losses (e.g., loss of rent until a new tenant is found) and reasonable costs of re-letting the property. Again, you must be able to evidence these costs.
• Council Tax: Tenants are typically liable for council tax.
• Utilities: Gas, electricity, water, or other fuel charges.
• Communication Services: Telephone, broadband, and cable/satellite television.
• Television Licence: Tenants are responsible for this.

It's crucial that any charges for damage, cleaning, or similar issues at the end of the tenancy come out of the tenancy deposit and are subject to the rules of the deposit protection scheme. You cannot raise separate invoices for these.

What a Landlord Cannot Charge (Prohibited Payments)

Landlords and agents are legally prohibited from charging tenants for:

• Referencing fees: Including credit checks, employment checks, or previous landlord references.
• Inventory fees: For checking the property's condition at the start or end of the tenancy.
• Check-in or check-out fees: For attending appointments to provide or collect keys.
• Guarantor fees: For processing a guarantor application.
• Administration fees: General charges for setting up or managing the tenancy.
• Viewings fees: For showing the property to prospective tenants.
• Professional cleaning services: While you can expect a property to be returned in the same condition (minus fair wear and tear) as it was at the start, you cannot charge a separate fee for professional cleaning. Any costs for excessive cleaning would come from the deposit.
• Tenancy agreement fees: For producing or amending the tenancy contract.
• Pet fees/deposits (other than within the main security deposit cap): You cannot charge a separate upfront 'pet rent' or 'pet deposit' in addition to the main security deposit. If you allow pets, any increased risk to the property comes under the standard tenancy deposit and its cap.

If a charge is not explicitly listed as a 'permitted payment', then it is prohibited.

Penalties for Non-Compliance

The Tenant Fees Act imposes significant penalties for landlords and agents who breach its provisions. These are enforced by local authority trading standards.

• First offence: A financial penalty of up to £5,000. The enforcement authority may also order the repayment of any unlawfully charged fees to the tenant.
• Second or subsequent offences: Can result in a financial penalty of up to £30,000, or even a criminal offence punishable by an unlimited fine. In such cases, the landlord or agent will also be banned from letting out properties for a period of time, and prohibited from recovering possession of the property under a 'no-fault' Section 21 notice until any unlawfully retained fees are repaid.

Landlords must also be aware that if a prohibited payment has been taken, a Section 21 notice (for seeking possession without fault) cannot be served until the payment has been refunded to the tenant.

Common Mistakes Landlords Make

• Misinterpreting 'default fees': Charging for any late payment, regardless of the 14-day grace period, or charging an amount higher than 3% above the Bank of England's base rate.
• Retaining a holding deposit incorrectly: Not adhering to the strict rules about when and why a holding deposit can be retained (e.g., if the tenant pulls out, fails referencing due to false information, or breaches contract). Landlords must act reasonably and within defined timeframes.
• Charging for 'professional cleaning': While you can expect the property to be cleaned to a professional standard (or equivalent to its starting condition), you cannot mandate or charge a separate fee for professional cleaning directly. Any costs should be claimed from the deposit based on evidence if the property is not returned clean enough.
• Charging for tenancy variations above £50 without justification: While £50 is the default, if you charge more, you must be able to demonstrate that your costs were genuinely higher.
• Requiring a 'pet rent' or additional 'pet deposit': This is a common misunderstanding. Any premium for a pet must be managed within the main tenancy deposit cap.

Practical Compliance Checklist for Landlords

1. Review your charging practices: Go through all fees you currently charge or intend to charge. If a fee isn't on the 'permitted payments' list, remove it.
2. Update your tenancy agreements: Ensure your agreements reflect the permitted payments only and do not include clauses for prohibited fees.
3. Know the deposit caps: For tenancies up to £50,000 annual rent, the maximum deposit is five weeks' rent. For tenancies over £50,000, it's six weeks' rent. Stick to these strictly.
4. Understand holding deposit rules: Be clear on the precise conditions under which a holding deposit can be retained and the timeframe for returning it.
5. Evidence justifiable fees: If you charge for tenancy variations or early termination, keep clear records and receipts to justify the costs.
6. Train your letting agent: If you use an agent, ensure they are fully aware of and compliant with the Tenant Fees Act. As the landlord, you are ultimately responsible.
7. Keep up-to-date: Legislation can change. Stay informed about any further amendments to landlord-tenant law.

What to do this week

• Review existing tenancy agreements and advertising materials: Check for any mention of prohibited fees and remove them immediately.
• Confirm your tenancy deposit protection scheme is compliant: Ensure all deposits are protected and within the legal caps.
• Familiarise yourself with the rules on holding deposits: Understand exactly when and how they can be retained or must be returned.